MUMBAI : India continues to shine in the world of gold jewellery exports. India, the largest consumer and importer of gold globally, exported gold jewellery items worth US$ 776.97 million during January, 2010, an increase of 27.95%.
Last week, the World Gold Council had said in a report that India retained its numero uno position in gold consumption in 2009 with demand totalling 405.8 tonnes, despite an annual decline in demand by 19% compared to 2008. Indians consumed 501.6 tonnes in 2008 and witnessed a weak first quarter sales in 2009.
Gold imports by India have increased in 2010 compared to the figures in 2009. The total gold import during January rose to a three-month high at 37 tonnes as compared with 27 tonnes in December and 30 tonnes in November 2009. In October, however, gold’s arrival into the country was recorded at 48 tonnes on occasional demand from retail jewellers.
India imported 343 metric tons of gold in 2009, which is 18% less than the yellow metal the country imported in 2008. The fall in gold imports in 2009 led to an increase in scrap sales that touched around 200 tons last year.
Now, according to the data from the Gems and Jewellery Export Promotion Council of India, the country's overall exports of gems and jewellery at US$ 2,620.71 million (rupees 12,044.80 crores) in month of January 2010 is showing a growth of 61.80% (52.29% in rupees term) as compared to US$ 1,619.77 million (rupees 7,909.32 crores) of same period previous year.
The overall export of cut and polished diamonds at of US$ 1,709.68 million (rupees 7,857.69 crores) in month of January 2010 is showing a growth of 89.02% (77.91% in rupees term) as compared to US$ 904.48 million (rupees 4,416.57 crores) for the same period of previous year. It is to be noted that the growth is due to less export in January 2009.
Provisional export of gold jewellery for the period January 2010 at US$ 776.97 million (rupees 3570.97 crores) shows growth of 27.95% (growth of 20.43% rupee term) over the comparative figure of US$ 607.23 million (rupees 2,965.12 crores) for January 2009.
It may be noted that the average of gold content or base metal used in the studded jewellery with smaller diamonds is much more than the jewellery studded with bigger diamonds. Hence, though the gold prices had gone up substantially during last year, the exports have declined which points out to sharp decrease in number of pieces that is exported.
Export of coloured gemstones at US$ 39.09 million (in rupees 179.67 crores) shows a growth of 52.4% (43.48% in rupee term) during January 2010 as compared to US$ 25.65 million (rupees 125.23 crores) in January 2009.
National Spot Exchange Ltd, India’s top commodity bourse for trading physical bullion, says the households in India have nearly 22,000 tons of gold locked away in family vaults. This makes India one of the largest stockists of physical gold in the world.
Source : Commodity Online